Comparison of Systematic Investment Plan (SIP) and Value Investment Plan (VIP).

Query: Please find the comparison of Systematic Investment Plan (SIP) and Value Investment Plan (VIP) for your kind reference. 

 

Nominal value	10000
Limit	No Limit

 

Value Investment Plan (VIP)
Month	Market Values (Nifty)	Monthly Investment (Rs.)	NAV (Rs.)	Units	Units @ end
4/15/2006	2943.9	10000.00	294.39	33.96854513	33.9685451
5/15/2006	3007.8	9907.94	300.78	32.94082385	66.909369
6/15/2006	2299.25	14992.43	229.93	65.2057229	132.115092
7/15/2006	2560.15	6932.82	256.02	27.07975816	159.19485
8/15/2006	2730.1	7803.94	273.01	28.58480236	187.779652
9/15/2006	2898.9	7471.10	289.89	25.77219291	213.551845
10/15/2006	3090.25	6687.52	309.03	21.64069977	235.192545
11/15/2006	3225.65	7724.00	322.57	23.94555405	259.138099
12/15/2006	3235.45	10790.91	323.55	33.35210148	292.490201
1/15/2007	3385.2	6802.88	338.52	20.09595008	312.586151
2/15/2007	3403.7	10744.42	340.37	31.56689461	344.153045
3/15/2007	3019.3	24693.49	301.93	81.78546422	425.93851
4/15/2007	3302.85	0.00	330.29	0	425.93851
5/15/2007	3421.9	6698.78	342.19	19.57620151	445.514711
6/15/2007	3486.7	9021.83	348.67	25.87498819	471.389699
7/15/2007	3791.65	0.00	379.17	0	471.389699
8/15/2007	3660.9	18264.97	366.09	49.89203206	521.281731
9/15/2007	3800.85	5160.23	380.09	13.57652869	534.85826
10/15/2007	4621.05	0.00	462.11	0	534.85826
11/15/2007	4923.85	0.00	492.39	0	534.85826
12/15/2007	5224	0.00	522.40	0	534.85826
1/15/2008	5282.1	10328.64	528.21	19.55405035	554.41231
2/15/2008	4432.6	53579.54	443.26	120.8760977	675.288408
3/15/2008	3868.65	46968.30	386.87	121.4074677	796.695876
4/15/2008	3938	8492.18	393.80	21.564695	818.260571
5/15/2008	4159.3	0.00	415.93	0	818.260571
6/15/2008	3679.75	48977.26	367.98	133.0994137	951.359984
7/15/2008	3085.5	65470.15	308.55	212.1865273	1163.54651
8/14/2008	3551.3	0.00	355.13	0	1163.54651
9/15/2008	3243.6	44398.50	324.36	136.8803113	1300.42682
10/15/2008	2553.3	91405.69	255.33	357.9904007	1658.41722
11/15/2008	2203.55	66175.45	220.36	300.312911	1958.73013
12/15/2008	2282.35	916.68	228.24	4.016391284	1962.74653
1/15/2009	2133.3	41541.24	213.33	194.7275892	2157.47412
2/15/2009	2264.3	0.00	226.43	0	2157.47412
3/16/2009	2114.8	44213.95	211.48	209.0691648	2366.54328
4/15/2009	2691.3	0.00	269.13	0	2366.54328
5/15/2009	2833.65	0.00	283.37	0	2366.54328
6/15/2009	3594.25	0.00	359.43	0	2366.54328
7/15/2009	3435.7	38230.33	343.57	111.2737762	2477.81706
8/15/2009	3749.6	0.00	374.96	0	2477.81706
9/15/2009	3939.65	0.00	393.97	0	2477.81706
10/15/2009	4165.45	0.00	416.55	0	2477.81706
11/15/2009	4162.25	17494.20	416.23	42.03063086	2519.84769
12/15/2009	4173.5	15700.79	417.35	37.62019862	2557.46789
1/15/2010	4468.15	0.00	446.82	0	2557.46789
2/15/2010	4096.2	69040.65	409.62	168.5480412	2726.01593
3/15/2010	4233.4	0.00	423.34	0	2726.01593
4/15/2010	4359.4	0.00	435.94	0	2726.01593
5/15/2010	4236.65	37258.34	423.67	87.94292604	2813.95885
6/15/2010	4314.8	5904.17	431.48	13.68352222	2827.64238
7/15/2010	4468.45	0.00	446.85	0	2827.64238
8/15/2010	4554.45	5100.54	455.45	11.19902879	2838.8414
9/15/2010	4861.3	0.00	486.13	0	2838.8414
10/15/2010	4998.7	0.00	499.87	0	2838.8414
11/15/2010	5042.8	12884.15	504.28	25.54959054	2864.39099
12/15/2010	4760.3	65092.33	476.03	136.7399715	3001.13097
1/15/2011	4566.75	53807.31	456.68	117.8240835	3118.95505
2/15/2011	4365.75	57719.04	436.58	132.2087699	3251.16382
3/15/2011	4399.65	14095.47	439.97	32.03770608	3283.20153
4/15/2011	4730.5	0.00	473.05	0	3283.20153
5/15/2011	4469	71463.66	446.90	159.9097288	3443.11125
6/15/2011	4457.3	24031.84	445.73	53.91568056	3497.02693
7/15/2011	4527.25	6967.10	452.73	15.38924609	3512.41618
8/15/2011	4150.66	102968.03	415.07	248.0762888	3760.49247
8/15/2011		-1560852.57
Total Investment		1283922.78		Received	1560852.57
	Absolute Return		22%
	CAGR		9.08%

Systematic Investment Plan (SIP)
Month	Market Values (Nifty)	Monthly Investment (Rs.)	NAV (Rs.)	Units	Units @ end
4/15/2006	2943.9	10000	294.39	33.96854513	33.96854513
5/15/2006	3007.8	10000	300.78	33.24689142	67.21543654
6/15/2006	2299.25	10000	229.93	43.49244319	110.7078797
7/15/2006	2560.15	10000	256.02	39.06021132	149.768091
8/15/2006	2730.1	10000	273.01	36.62869492	186.396786
9/15/2006	2898.9	10000	289.89	34.49584325	220.8926292
10/15/2006	3090.25	10000	309.03	32.35984144	253.2524707
11/15/2006	3225.65	10000	322.57	31.00150357	284.2539742
12/15/2006	3235.45	10000	323.55	30.90760172	315.161576
1/15/2007	3385.2	10000	338.52	29.54035212	344.7019281
2/15/2007	3403.7	10000	340.37	29.37979258	374.0817207
3/15/2007	3019.3	10000	301.93	33.12025966	407.2019803
4/15/2007	3302.85	10000	330.29	30.27688209	437.4788624
5/15/2007	3421.9	10000	342.19	29.22353079	466.7023932
6/15/2007	3486.7	10000	348.67	28.68041415	495.3828073
7/15/2007	3791.65	10000	379.17	26.3737423	521.7565496
8/15/2007	3660.9	10000	366.09	27.3156874	549.072237
9/15/2007	3800.85	10000	380.09	26.30990436	575.3821414
10/15/2007	4621.05	10000	462.11	21.64010344	597.0222448
11/15/2007	4923.85	10000	492.39	20.3093108	617.3315556
12/15/2007	5224	10000	522.40	19.1424196	636.4739752
1/15/2008	5282.1	10000	528.21	18.93186422	655.4058395
2/15/2008	4432.6	10000	443.26	22.56012273	677.9659622
3/15/2008	3868.65	10000	386.87	25.84881031	703.8147725
4/15/2008	3938	10000	393.80	25.39360081	729.2083733
5/15/2008	4159.3	10000	415.93	24.04250715	753.2508805
6/15/2008	3679.75	10000	367.98	27.17575922	780.4266397
7/15/2008	3085.5	10000	308.55	32.40965808	812.8362978
8/14/2008	3551.3	10000	355.13	28.15870245	840.9950002
9/15/2008	3243.6	10000	324.36	30.82994204	871.8249423
10/15/2008	2553.3	10000	255.33	39.16500215	910.9899444
11/15/2008	2203.55	10000	220.36	45.38131651	956.3712609
12/15/2008	2282.35	10000	228.24	43.81448945	1000.18575
1/15/2009	2133.3	10000	213.33	46.87573243	1047.061483
2/15/2009	2264.3	10000	226.43	44.16375922	1091.225242
3/16/2009	2114.8	10000	211.48	47.28579535	1138.511037
4/15/2009	2691.3	10000	269.13	37.15676439	1175.667802
5/15/2009	2833.65	10000	283.37	35.29017345	1210.957975
6/15/2009	3594.25	10000	359.43	27.82221604	1238.780191
7/15/2009	3435.7	10000	343.57	29.10615013	1267.886341
8/15/2009	3749.6	10000	374.96	26.66951141	1294.555853
9/15/2009	3939.65	10000	393.97	25.38296549	1319.938818
10/15/2009	4165.45	10000	416.55	24.00701005	1343.945828
11/15/2009	4162.25	10000	416.23	24.025467	1367.971295
12/15/2009	4173.5	10000	417.35	23.96070444	1391.932
1/15/2010	4468.15	10000	446.82	22.38062733	1414.312627
2/15/2010	4096.2	10000	409.62	24.41287047	1438.725498
3/15/2010	4233.4	10000	423.34	23.62167525	1462.347173
4/15/2010	4359.4	10000	435.94	22.93893655	1485.286109
5/15/2010	4236.65	10000	423.67	23.6035547	1508.889664
6/15/2010	4314.8	10000	431.48	23.17604524	1532.065709
7/15/2010	4468.45	10000	446.85	22.37912475	1554.444834
8/15/2010	4554.45	10000	455.45	21.95654799	1576.401382
9/15/2010	4861.3	10000	486.13	20.57062926	1596.972011
10/15/2010	4998.7	10000	499.87	20.00520135	1616.977213
11/15/2010	5042.8	10000	504.28	19.83025303	1636.807466
12/15/2010	4760.3	10000	476.03	21.00707939	1657.814545
1/15/2011	4566.75	10000	456.68	21.89741063	1679.711956
2/15/2011	4365.75	10000	436.58	22.90557178	1702.617527
3/15/2011	4399.65	10000	439.97	22.72908072	1725.346608
4/15/2011	4730.5	10000	473.05	21.13941444	1746.486023
5/15/2011	4469	10000	446.90	22.37637055	1768.862393
6/15/2011	4457.3	10000	445.73	22.43510645	1791.2975
7/15/2011	4527.25	10000	452.73	22.0884643	1813.385964
8/15/2011	4150.66	10000	415.07	24.09255396	1837.478518
8/15/2011		-762674.8585
Total Investment		650000.00		Received	762674.8585
Absolute Return		17%
CAGR		6.01%

Total Installments		65
Max Installment		102968.03
No Investments		21	times

Mr. Gerard Colaco: The way a Systematic Transfer Plan (STP) / SIP strategy exploits market volatility over a period of five years is indeed illuminating.

The objectives of getting an investor to make serious commitments to equity when the stock market is down and lightening those commitments when the stock market rises without sacrificing a regular long-term investing programme are achieved without the investor even being aware of it.

What made me take a serious look at Dr Michael E Edleson's concept of value averaging was the ringing endorsement it received from one of my heroes, Dr William J Bernstein. Bill Bernstein has written the foreword to the 2007 edition of Edleson's book.